Homebuilder Confidence Tanks

As reported by Bloomberg - "Homebuilder Confidence in U.S. Drops to Record Low":

Confidence among U.S. homebuilders in November dropped to the lowest level since record-keeping began in 1985, a sign that the deepening credit crisis is preventing prospective buyers from purchasing new homes.

The National Association of Home Builders/Wells Fargo index of builder confidence decreased to 9, lower than forecast, from 14 in October, the Washington-based association said today. A reading less than 50 means most respondents view conditions as poor.

It's really bad:

"The November results are eye-poppingly bad," Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York, said in a note to clients. "The magnitude of the housing bubble was unprecedented and the corrective process promises to be a long and painful one."

The bad news express is rolling with a full head of steam. Perception is reality. This is what happens when both are bad.